Bill > HB2802

This bill relates to comprehensive changes to the firefighters' relief and retirement fund for certain municipalities, primarily focusing on creating two distinct membership groups (Group A and Group B) with different retirement benefits and contribution structures. The bill modifies the fund's governance, contribution rates, benefit calculations, and administrative processes, with most significant changes taking effect on January 1, 2026. Group A members are generally those employed or retired before January 1, 2026, while Group B members are those hired on or after that date. Key provisions include changing board composition by adding a public member, modifying cost-of-living adjustment mechanisms, establishing new contribution and funding methodologies, and creating a more structured approach to actuarial valuation and municipal contributions. The bill introduces a risk-sharing approach where municipal contribution rates will be dynamically adjusted based on the fund's financial performance, and establishes more complex rules for DROP (deferred retirement option plan) participation, benefit calculations, and potential contribution rate adjustments. The overall goal appears to be improving the long-term financial sustainability of the firefighters' retirement system while maintaining distinct benefit structures for current and future members.

Budget and Finance, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2802